Consumer News & Alerts

June 30, 2008

By Martin H. Bosworth
ConsumerAffairs.com

'PERFECT STORM' DRIVES UP OIL PRICES
There's lots of speculation about what's causing the run-up in gas prices. Experts offer a wide variety of explanations. The bad news, our Fred Yager reports, is that most of them are right. In other words, a number of conditions have combined to drive up oil prices and, therefore, the price at the pump. While it may be possible to correct one or two of these conditions -- if, say peace breaks out in the Middle East -- it will help but it won't solve the problem. Read more ...

And then there are the hidden costs that drive up prices at the retail level. Martin Bosworth dissects the "hidden tax" represented by the fees charged to gas stations by the credit and debit card companies. One way or another, these get passed on to consumers. Read more ...

How do we feel about it? Well, as fictional anchorman Howard Beale might put it, we're mad as hell. A new survey released by the Civil Society Institute think tank found equal amounts of negative sentiment from Democrats, Republicans, and Independents over the high cost of gas, with many forecasting an increase in gas prices to $5 by Labor Day. But there's good news as well -- the same survey found a sharp increase in the number of Americans who favor buying fuel-efficient vehicles such as hybrids, and larger-scale action to promote renewable energy usage and end dependence on fossil fuels. Read more...

Not all is rosy in Priusland though. Owners of the Toyota Prius regularly report a host of ailments plaguing their cars to ConsumerAffairs.Com. As Joe Benton reports, the problems can range from the gas mileage not measuring up to the automaker's claims, to faulty traction control systems that can't handle the slightest incline, to dangerous and uncontrolled accelerations that could lead to serious accidents. Read more...

The gas price run-up has paused slightly but analysts see no reason to think there's an end in sight. Most immediate impact: a projected cutback in July 4th travel.

Also on the gas-price front ...

• Consumers Favor Hybrid Technologies Premium price less an obstacle than last year at this time.

• NHTSA Hears Testimony on Quiet-Running Hybrids Blind pedestrians say hybrids are a hazard.

• Resale Value of Trucks, SUVs Plummets Financing harder to find as lenders pull back.

• Hydrogen Fuel Cell Cars Bring Hope, If Not Relief Honda is first out of the gate, closely followed by scam artists.

In other automotive news ...

• California Court to Rule on Dex-Cool Settlement GM could pay millions in repair claims.

• Report: NHTSA Seeks More Time for Roof-Crush Rule Safety agency under fire over long-delayed proposal.

• NY Motorists Face Big Insurance Increase Last-minute deal carries a steep price tag.

• NHTSA Probes Saturn Timing Chain Again More than 400,000 L-Series cars could be affected.

• Bumper Stickers Linked to Road Rage Drivers who display 'territory markers' more prone to aggression.

SALMONELLA OUTBREAK IS BIGGEST-EVER RELATED TO PRODUCE
Tomatoes are back on store shelves and inside your hamburgers, but Centers for Disease Control and Prevention (CDC) investigators still haven't identified the culprit behind the recent salmonella outbreak that sickened 810 people. Worse, not only does the number of unreported cases likely outnumber the reported cases 30 to 1, the possibility exists that the contaminated produce is still out there, and may continue making consumers ill. Read more...

• E. coli Outbreak May Be Linked To Kroger Ground Beef Outbreak is centered in Michigan, Ohio.

CONGRESS INCHES AHEAD ON CONSUMER SAFETY BILL
After months of backroom politicking and favor trading, Congress has reached consensus on most -- but not all -- of the sweeping legislation designed to reform the troubled Consumer Product Safety Commission (CPSC). Joseph Enoch reports that members of both the House and Senate have been in conference trying to reconcile aspects of the reform bills passed by each chamber of Congress, balancing the lukewarm reforms of the House bill with the much stronger changes advocated by the Senate bill. Rules both sides have agreed on so far include the banning of lobbyist-sponsored travel packages for CPSC members, increasing the effectiveness of recall announcements, and increasing the civil penalties for companies that knowingly sell dangerous products. Read more...

ANHEUSER-BUSCH STOPS SALES OF ALCOHOLIC ENERGY DRINKS
Anheuser-Busch has agreed to stop selling its popular "Bud Extra" and "Tilt" alcoholic energy drinks as part of a settlement it reached with the Attorneys General of eleven states. The drinks, which combine alcohol with stimulants such as caffeine and ginseng, were found to cause "wide-awake drunk" reactions in drinkers, leading to higher incidents of injury and accidents than from drinking regular alcohol. The beer maker was also charged with violating consumer protection and marketing statutes by hawking the alcoholic energy drink to the under-21 crowd, and for not properly disclosing the dangers involved in its use. Read more...

More consumer protection news...

• Payday Loan Lead Generators Settle FTC Charges Ads didn't display annual percentage rate, as the law requires.

• Study: Parents Often Source of Liquor for Underage Drinkers Few teen drinkers pay for alcohol; many get it at home.

• FCC to Probe TV Show Product Placements Commission studies under-the-radar advertising.

• China's Exports Include Dangerous Web Sites Majority of 'badware' comes from Chinese sites, study finds.

• Washington Agog: FCC Rules Against Verizon Chairman Martin isolated in 4-1 vote to enforce existing rules.

• Poll Finds Google Most Reputable U.S. Company Oil companies, domestic automakers take a beating.

This week's recalls...

• Hewlett-Packard Fax Machines
• Coolibar Children's Sun Block Jackets, Hoodies
• RXV Golf Carts
• 2nd Nature Built to Grow Cribs
• Thunder Wolf Remote-Control Helicopters
• Mongoose Youth ATVs
• Kawasaki Youth ATVs

This week's shopping roundup...

• Massachusetts May Remove Price Tags From Groceries Consumer advocates call measure 'unreasonable'.

• Experts Fact-Check 'McDonald's Diet' Story Not a good long-term strategy?

• Mayors Douse Bottled Water Spending Imported water called a drain on taxpayers.

• Giant Food Intros $9.99 Generic Drug Plan Washington-area chain responds to Safeway, Wal-Mart.

BANKRUPTCY RECOVERY LONGER THAN EXPECTED
Bankruptcy traditionally is believed to offer struggling filers a fresh start through paying off their creditors and starting over again, but a study released by Ohio State University researchers found that it often takes bankruptcy filers between 10 to 20 years to regain their full financial status. Study co-author Jay Zagorsky examined the varying rates of car ownership, employment, and home ownership of bankruptcy filers to come to his conclusion, but cautioned that the study was conducted prior to passage of the tough new bankruptcy laws in 2005, which may impact current and future filers' return to full financial stability. Read more...

More economic and financial news...

• Existing Home Sales Rose in May Median price dropped 6.3% amid the glut.

• Metro Home Values Drop Again in April Biggest decline on record, no bottom in sight.

• California, Illinois Sue Countrywide For Mortgage Deception Nation's largest mortgage lender used 'deceptive scheme,' state charges.

• Survey: Americans Not Prepared for Retirement Only 28 percent expect to retire comfortably.

NEW ELECTRONIC DEVICE MAY ZAP AWAY MIGRAINE HEADACHES
Migraine headache sufferers may have some relief on the horizon. A new portable device called the "noninvasive transcranial magnetic stimulator" (TMS) can interrupt the formation of migraines through generating magnetic pulses when held against a person's head. Researchers at Ohio State University claim their test results are promising, and the TMS may signal a new era of painless treatment for that most painful of headaches.Read more...

More health news...

• Coming Soon: Generic Drugs from China Safety concerns temper enthusiasm over increased competition.

HOLIDAY SCHEDULE
Barring an outbreak of extreme workaholism, there will be no Consumer News & Alerts next week, in observance of the July 4th holiday. Likewise, there will be no Daily Consumer on July 4.

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